KUCHING: Petra Energy Bhd has delivered sharply higher group net profits of RM29.53 million in second quarter to June 30, 2024 (2Q2024) from RM16.24 million in 2Q2023 despite drop in group revenue to RM162.6 million from RM184.8 million. The higher profits boosted earnings per share to 9.2sen from 5.06sen.
In the current quarter under review, the marine assets segment reported sharply higher revenue of RM74.39 million (2Q2023:RM57.59 million) but the services segment saw its revenue shrank significantly to RM88.16 million (RM127.2 million).
The production and development segment has not generated any revenue.
The marine asset segment owns and operates three accommodation and work barges, four workboats, one AHTS vessel and one mobile offshore production unit to support the group’s operation.
The services segment is involved in hook-up construction and commissioning and topside major maintenance; project management, procurement and logistics; engineering, operations and maintenance; oil field optimisation as well as equipment, packaging and manufacturing.
Petra Energy said the marine assets segment pre-tax profit in 2Q2024 climbed to RM27.7 million (2Q2023:RM18.9 million) in line with revenue growth to RM132.8 million (RM95.5 million) as a result of higher vessel utilisation rate.
The company said the services segment pre-tax profit surged to RM17.9 million (RM5.9 million) despite drop in revenue to RM91.4 million (RM132.8 million) due to improved product mix margin between the quarters.
“Petra Energy Development Sdn Bhd, a wholly-owned subsidiary of the group, received a letter of award from Petroliam Nasional Bhd (Petronas) on the Banang Late Life Assets Production Sharing contract (Banang LLA PSC) for a period of 10 years from 1 June 2024.
The (financial) results of Banang LLA PSC will be recognised in this segment.
“The cost of crude oil is recognised as inventory on a weighted average basis, subsequently, inventory becomes an expense when the crude oil is sold,” it added.
As compared to the immediate preceding quarter (1Q2024), Petra Energy group revenue leapt by RM43.8 million (36.9%) to RM162.6 million in 2Q2024 (1Q2024:RM118.8 million) as a result of higher activities executed in the existing contract, driving group pre-tax profit to RM36.2 million from pre-tax loss of RM0.3 million in 1Q2024.
In first half of financial year 2024 (1H2024), Petra Energy reported sharply higher group net profit of RM27.16 million (1H2023:RM10.34 million) as revenue expanded to RM281.4 million (RM266.3 million).
The services segment pre-tax profit surged to RM24 million (RM10.7 million) despite lower revenue of RM174 million (RM193.4 million), thanks to higher product mix margin in the current financial period.
The marine assets segment pre-tax profit more than doubled to RM25 million (RM11.7 million) in line with revenue growth to RM192.3 million (RM137.6 million) as a result of higher vessel utilisation.
On prospects going forward, Petra Energy said:” The outlook on the oil & gas industry remains positive evidenced by the favourable oil price level.
Major oil producers continue to increase their capital expenditure in response to prolonged lack of investment in the past.
“This positive outlook augurs well for the group’s financial performance.
The group remains guarded and will continue to pursue other opportunities capitalising on its financial strength.
“Barring any unforeseen circumstances, the group is optimistic that it will continue to deliver good results for the financial year 2024,” it added.
